Savings update as unique bank account offers 5% interest rate – are you eligible?

Interest rates: Expert advises on savings and mortgages

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Chase will automatically save the difference of rounded-up payments into a separate savings account where it will earn the interest boost. However, there are some terms and conditions Britons should be aware of before opening an account.

When Britons use their debit card to make normal, everyday purchases and choose to round up to the total to the nearest pound, Chase will automatically transfer the funds to their round-up account. 

People with round-up accounts will not be able to make payments into it other than by using round-ups. 

These round-ups are made on debit card payments. 

Their savings can also only be withdrawn by transferring funds to another account either with Chase or a UK bank. 

GRANDPARENTS may be able to boost their state pension by up to £2,340.

Savers will therefore not be able to spend directly from the account, keeping their savings safe from accidental expenditure. 

The interest rate is a variable five percent AER, or 4.89 percent gross.

All funds including interest can be transferred into an account of the savers’ choosing annually. 

However, savers must have at least one account open at anytime to continue using the round-up account. 

The round-up account can be closed at any time without charge with all interest and funds being transferred to the savers account of choice. 

If someone decides to close all of their accounts with Chase, they will transfer any remaining funds in the round-up and close it when the last account is closed. 

Savers can also only have one round-up account at any given time. 

For those that don’t quite take to the round-up savings strategy, Chase’s saver account offers a similarly market leading 1.5 percent interest rate.

The saver account is easy access meaning that people can withdraw or use their funds whenever they want without needing to give notice, incurring fees or losing interest. 

Savers can open as many of these accounts as they like, with each account receiving a unique account number. 

The accounts can also be personalised with labels from the saver, indicating what they are saving for and keeping their goals at the forefront of their savings journey. 

Both of these accounts are offering well above the current base rate of 0.75 percent. 

The last base rate rise in February saw many banks quickly passing on the rise to their mortgage customers. 

However, on the other side of the spectrum some were sceptical of whether the rise would be passed on at all to their savings customers. 

It also marked the third base rate rise in six months.

The base rate was reduced to a meagre 0.1 percent at the beginning of the pandemic and remained at this record low until the end of last year. 

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